Swedbank AB and Svenska Handelsbanken AB, two of Sweden's leading lenders, reported lending profits for the third quarter that exceeded expectations, despite a decrease in overall profit levels due to declining interest rates.

Swedbank's net interest income for the three months ending in September declined by 5% compared to the previous year, amounting to 12.23 billion kronor ($1.2 billion), while Handelsbanken experienced a 3% drop to 11.76 billion kronor.

Analysts surveyed by Bloomberg had predicted lower figures for both banks, highlighting the positive impact of favorable funding and deposit conditions on their lending performance.